The new Fundraising Regulator, which is due to take over from
the FRSB on 7 July 2016, has published proposals on how charities
and fundraising organisations will register with it and the
financial contribution they will be asked to make. The Fundraising
Regulator's preferred option is for all charities who spend
more than £100,000 a year on generating funds from the public
(approximately 2,000 charities) to contribute towards the levy.
The Fundraising Regulator has considered the following
principles when putting together its proposals:
fairness – charities who spend the most on generating
voluntary income contribute the highest rate of the levy;
ensuring that charities within the scope of the levy are not
disproportionately disadvantaged by the cost or requirements of
ensuring that a small number of charities are not seen to
influence the Fundraising Regulator due to the amount which they
comparative to the membership fees imposed by the FRSB and
simple and straightforward to minimise any overheads.
It is proposed that charities who spend more than £100,000
a year generating voluntary income will pay a staggered levy
starting at £250 and rising to £10,000 for the 13
charities who spend more than £20m a year on generating
voluntary income. The rate payable will be fixed from 1 August 2016
to 31 March 2019. The Fundraising Regulator considers that this
will provide certainty and will discourage organisations from
trying to allocate their fundraising expenditure elsewhere.
The Fundraising Regulator proposes that a small number of exempt
charities (150) that raise voluntary income (such as universities
in England and national museums and galleries) should also
contribute to the levy at a fixed rate of £1,500. This is
because they have a different accounting regime so details of their
fundraising expenditure is not easily available. It is not clear
how the Fundraising Regulator will determine which of the many
exempt charities will be required to contribute towards the
There will also be a small administrative charge for charities
who are not caught by the levy and fundraising agencies who wish to
sign up to the Fundraising Regulator.
The consultation paper highlights that the Fundraising Regulator
is a voluntary self-regulatory body, although notes that the
Government has reserve powers to require English and Welsh
charities to sign up to the Fundraising Regulator or contribute
towards the levy. Discussions are still taking place in Scotland
and Northern Ireland to confirm whether Scottish and Northern Irish
charities will be able to join the Fundraising Regulator.
The consultation is open until 22 July and we invite all
charities, particularly those who may fall within the scope of the
levy or who are exempt charities, to respond to the consultation.
Withers will be responding to the consultation through our
membership of the Charity Law Association.
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